In a post yesterday (“USDCHF moves down toward lower target area”), I spoke to the USDCHF support being approached near the rising 200 bar moving average on the 4 hour chart, and also a swing area between 0.9848 and 0.9873.
The price ended up moving down toward that 200 bar moving average dipping briefly below the level at 0.9844 (at the time). The low price ticked to 0.98415 before bouncing higher (close enough).
The inability to find momentum below the moving average helped to turn sellers into buyers, and the price ended up bouncing to and through the broken 38.2% retracement at 0.98919. Further buyer momentum, took the price up to a swing area between 0.9917 and 0.99299. The high price reached 0.9927 before rotating back to the downside.
The technical levels have done a good job of defining the range.
What we know is support is at the 200 bar moving average on the 4-hour chart and lower swing area (between 0.9848 to 0.9873).
Meanhwhile, resistance at the higher swing area (see green numbered circles) is the topside target now.
The current price trades between those levels and rate near the 38.2% retracement at 0.9892.
Flip a coin here.
Buyers who leaned against the 200 bar MA below are happy.
Seller who sold against the 100 bar MA earlier this week and against the swing area today are happy.
The battle is on. The happy traders will be battling for control above or below the 38.2% and looking for the next shove either above the topside targets, or below the lower targets.